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Don’t Go 50/50 in Business Without This Agreement - ZBS
Did I accidentally make my business partner pay 10x more for shares they could have received for free at the beginning?
Here's the harsh reality: Three years ago, when we started, I actually tried to reduce my own equity. I wanted them to have more because they would be managing the daily operations while I took a more hands-off approach. They, however, insisted on a 50/50 split.
Now? Those shares are incredibly valuable. And repurchasing even a small 5-10% stake will cost them significantly more than the zero it would have been initially.
This isn't about greed; it's about making smart decisions. I've invested in several companies, but this was my first significant partnership. The lesson learned? What seems like a "fair" 50/50 split today can become an expensive regret tomorrow.
I also discuss why you should never rely on verbal agreements or skip hiring a lawyer to save a little money. And most importantly, don't let emotions dictate your decisions, even if it's with your spouse or best friend.
The crucial question is: Are you properly documenting your partnership, or are you inadvertently setting yourself up for future legal battles?
What's your most terrible partnership horror story? Share it in the comments below 👇
Check Your Eligibility to Setup a Free Zone Company in Dubai: https://handlrzone.com/rum
00:00 Introduction and Location Update
00:09 Domain Name and Legal Matters
00:28 Business Partner Shareholding Discussion
02:05 Importance of Legal Agreements
05:53 Personal Experience and Advice
08:30 Final Thoughts and Conclusion
#MakeBiggerMoves #BiggerMoves #aaronhenray #BusinessPartnerships #ShareholderAgreements #EntrepreneurMistakes #BusinessEquity #StartupAdvice #BusinessLessons #EntrepreneurshipTips #BusinessStrategy #LegalAdvice #EquitySplit #BusinessGrowth #StartupFounders
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